FX.co ★ Trading plan for EURUSD on November 16, 2022

Technical outlook:

EURUSD rose through the 1.0480 high intraday on Tuesday before hitting resistance and reversing sharply. The single currency pair slipped to 1.0280 thereafter and is seen to be trading close to 1.0355 at this point in writing. Furthermore, it has carved a Pinbar candlestick pattern on the daily chart, indicating a potential bearish reversal against the 1.0480 mark.

EURUSD has easily taken out two significant resistances at 1.0200 and 1.0350 last week. Also, note that prices rallied more than 120 pips further before hitting resistance, which calls for a meaningful pullback at least towards 1.0000 before resuming higher again. A break below 1.0280 will confirm that a pullback is underway.

The recent larger-degree upswing is seen between 0.9740 and 1.0480 now. Prices could drop towards the 1.0000 mark, which is close to the Fibonacci 0.618 retracement of the above upswing. A bullish turn there will resume the rally towards the 1.0600 mark before giving in to the bears again. On the flip side, a break below 0.9740 would trigger a further selloff.

Trading idea:

Acpotential drop against 1.0550

Good luck!